Junior Spoornet employees are to receive a 4,5% salary increase, backdated to April 1, Transnet announced on Tuesday.
The transport utility said the agreement follows weeks of tough negotiations with Spoornet’s recognised unions.
”In terms of the comprehensive one-year agreement, covering a range of employee benefits, a 4,5% across-the-board increase will be granted to all junior Spoornet employees’ pensionable salaries. The agreement becomes effective on April 1 2005,” Transnet said in a statement.
An additional 1% has been reserved for performance-related adjustments, known as ”notches” at the company.
”This part becomes effective in October 1 2005. The notch increase is only available to employees who exceed their job requirements.”
A range of allowances will also be adjusted by 4,5% from April 1.
”We welcome the conclusion of the agreement, which we believe achieves the balance between the need for a decent wage and affordability. We would like to express our gratitude to the labour representatives for their commitment to agreeing a balanced deal.
”We believe the agreement recognises the enormous challenge facing Transnet to turn Spoornet around as part of the bid to cut the cost of doing business in our country.
”Spoornet’s turnaround is a key component in Transnet’s own plan to restore the business to financial health as the group implements the ambitious capital-expenditure programme,” the company said.
Transnet defines ”junior employees” as those falling within the Spoornet chamber of the Transnet Bargaining Council for purposes of collective bargaining. — Sapa